The Avalanche Foundation is working on a $1 billion fundraising plan, and the outcome could shape the price path of its native token, AVAX (AVAX-USD). The money will come from selling millions of tokens at a discount, a strategy that could fuel long-term growth but also spark short-term volatility.
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Avalanche Is Selling Millions of Tokens to Fill Its War Chest
Two separate deals make up the raise. The first, worth $500 million, is being led by Hivemind Capital and could close by the end of the month. Anthony Scaramucci is advising on the deal. The second involves Dragonfly Capital, another heavyweight crypto investor, and is also targeting $500 million. That one might not wrap up until October.
At current prices, $1 billion equals around 34.7 million AVAX, about 8% of the 422.3 million tokens in circulation. Because the total supply is capped at 720 million, the fundraising has the power to tilt the balance of supply and demand. If institutions treat this as a chance to buy into Avalanche’s future, it could be a strong bullish signal. On the other hand, the flood of discounted tokens could create near-term selling pressure.
Avalanche Is Hoping to Get a Boost from Treasury Power
The funds are expected to be funneled into treasury-focused ventures. One plan is to launch a digital asset treasury company. Another involves turning an existing company into what sources describe as a “crypto-hoarding vehicle,” essentially designed to accumulate tokens.
This kind of treasury strategy shows how Avalanche wants to build lasting financial firepower, and not just rely on market cycles. If managed well, the approach could reduce uncertainty and make AVAX more attractive to larger investors who prefer predictable structures. Still, the optics of selling such a large chunk of supply could weigh on sentiment if traders worry about dilution.
Pay Attention to Avalanche’s Price History
Avalanche has had a volatile history since launching in 2020. AVAX hit an all-time high above $134 in late 2021 before crashing during the 2022 crypto sell-off. It has not traded above $65 since that period. At the time of writing, AVAX sits near $29 after gaining 16% in the past week.
This context matters because investors are weighing whether the new $1 billion raise will finally be the spark for another major run. The discounted sales create risk, but they also show that large funds are willing to commit capital. This is a confidence boost that has been missing since the last bull run.
The Market Is Looking for Signals
Avalanche’s push comes as the broader crypto market shows signs of revival. Major investors like Grayscale have already filed to launch a spot Avalanche ETF, highlighting growing institutional interest. If the $1 billion raise goes through as planned, AVAX could be one of the few altcoins positioned with both deep-pocketed backers and clear supply constraints.
That combination could make the token more volatile in the short term, but it also sets the stage for a stronger long-term trajectory if the treasury plan succeeds.
At the time of writing, AVAX is sitting at $28.98.
